The National Company Law Tribunal (NCLT), Chennai, has asked ASG Hospital for the sources of funds for its about ₹520-crore bid for Vasan Health Care Pvt. Ltd. under the corporate insolvency and resolution process.
According to the legal proceedings, the committee of creditors had approved the Rajasthan-based ASG Hospital’s resolution plan with 97.9% voting in favour of the bid and sought the NCLT’s approval. At Friday’s hearing, the resolution professional told the NCLT that the bid was three times more than the liquidation value. He said the UAE-based Foundation Holdings, which already has a 40% stake in ASG Hospital, had committed itself to fund the acquisition.
The resolution professional said ASG Hospital is focused on eyecare like Vasan and has over 50 eye hospitals across India. It plans to integrate the over 90 chains of Vasan Health Care with it after the plan is approved.
The NCLT asked the resolution professional for the sources and break-down of funds and the unconditional letter of commitments from the parties that ASG Hospital is relying on for the funding. According to sources, the other bidders in the fray included MGM Healthcare’s managing director M.K. Rajagopalan in his personal capacity, Dr. Agarwal’s Health Care Ltd. and iLabs India Special Situations Fund.
In 2017, the NCLT ordered the commencement of insolvency proceedings against Vasan Health Care on a petition filed by Alcon Laboratories (India) Pvt. Ltd., one of its suppliers. This was the first case to be admitted by NCLT, Chennai, under the Insolvency and Bankruptcy Code, 2016.
According to information available on Vasan Eye Care’s website, its financial creditors have a claim of ₹1,368.90 crore. With the other creditors included, the total admitted claims stand at over ₹2,000 crore.
Last year, the National Company Law Appellate Tribunal, Chennai, allowed an appeal filed by the lenders against an NCLT order that refused to extend the time frame under the insolvency resolution process. It ordered filing for liquidation of the company.
Mr. Rajagopalan has sought to file a petition against the lenders choosing ASG Hospital’s plan, which would be taken up by the NCLT in the course of its hearing on the resolution plan. It has posted the case for further hearing on July 28.
